What is the minimum renewal fee for a Costa Vida Fresh Mexican Grill franchise agreement?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount Due Date | Remarks (See Note 1) | |
|---|---|---|---|
| Renewal Fee | Greater of $7,500 or then current Franchise Fee less the amount paid to us as an initial Franchise Fee | 30 days before expiration of the original franchise term, concurrent with the signing of a new Franchise Agreement | Renewal Fee is for an additional franchise term at the same site under a new Franchise Agreement. See Note 17 below. |
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, the renewal fee is the greater of $7,500 or the then-current franchise fee less the amount paid as an initial franchise fee. This fee is due 30 days before the expiration of the original franchise term, and is required when signing a new Franchise Agreement for an additional term at the same site.
In practical terms, this means that a Costa Vida Fresh Mexican Grill franchisee will need to pay at least $7,500 to renew their franchise agreement, assuming the current franchise fee minus the initial fee paid is less than this amount. However, if the franchise fee has increased significantly since the original agreement, the renewal fee could be substantially higher.
Franchisees should be aware of this potential cost when considering the long-term financial implications of investing in a Costa Vida Fresh Mexican Grill franchise. It is important to factor in the possibility of a higher renewal fee when projecting future profitability and return on investment. Franchisees should also confirm what the then-current franchise fee is at the time of renewal to accurately determine the renewal fee amount.